Big 5 Sporting Goods Stock Can Rise 25%

The retailer's stock has fallen hard since last summer. However, shares are poised to rise by 25%.

Last year, worries that the U.S. government would enact tougher gun control laws prompted gun enthusiasts to stock up on guns and ammunition. That was a boon for many retailers, including Big 5 Sporting Goods (ticker: BGFV), a sporting-goods retailer based in El Segundo, Calif.

Higher gun sales contributed to big increases in same-store sales in the first half of 2013.